Mis - Sold Endowment

neecieb

Hi , Can anyone help ? I am currently sitting with a substantial shortfall in my mortgage endowment Sold to me through My Lender. A friend of mine suggest I can try and reclaim this back as I have been miss-sold or wrongly advised. Is this true and if so how can I go about it..Thanks

opinions4u

You've probably missed the boat.

How many years have they been telling you it's underperforming?

Why do you think it was mis-sold.

neecieb

I have been receiving the so called red letters advising of the shortfall for 4-5 years maybe...I understand there can be shortfalls but £28,000 ?? I think I have been incorrectly informed

holly_hobby

You have 3 yrs from the date of your 1st red letter to complain regarding the suitability of the policy, after which you are timebarred.

Your complaint would be regarding suitability, not that the policy hasn't performed as hoped - given that returns (other than on death within the term, or Basic Sum Assured) are not guaranteed.

If you weren't aware of the risk nature of the contract, why didn't you complain when you received your 1st red letter ?

Hope this helps

Holly

dunstonh

Over three quarters of endowments are timebarred from complaint. The endowment issues is largely considered over and has been for some time. There may be the odd straggler but its unusual nowadays.

As mentioned you get three years from the first red letter (high risk of shortfall). Most of those started going out around 2001 onwards. If you have only been getting red letters for the last 4-5 years then it would suggest that yours is not far off. Yet your figures suggest otherwise. So maybe you have been getting them longer than 4-5 years?

Endowments were set up to pay an amount if a certain annual average return was achieved. The problem isnt so much that they have underperformed but that the economy changed and the target growth rates were too high. The returns, net of inflation are not too dissimilar to what they were in the past. However, that has meant endowments tend to not meet target. On the plus side, the very things that have made endowments fail to hit target are also responsible for the low interest rates. So, you are likely to be vastly better off than had the economic events that suited endowments carried on and the endowment hit target. So, its not all bad news.